Finding 400936 (2023-004)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-06-17

AI Summary

  • Core Issue: Reimbursement claims for meals exceeded the number of eligible participants on record.
  • Impacted Requirements: Compliance with Title 7, CFR Section 225.9 (d)(5) regarding accurate claims and supporting records.
  • Recommended Follow-Up: Review and strengthen internal controls to ensure daily participant rosters are maintained and adhered to.

Finding Text

2023-004 – Reimbursement Claims Reported Meals Delivered To Unidentified Participants Significant Deficiency in Internal Controls over Compliance and on Compliance Award 10.558; Compliance Requirement E – Eligibility Condition: Reimbursement claims were made for more meals than there were participants on the specified date. Criteria: Title 7 of the Code of Federal Regulations, Section 225.9 (d)(5) states, “In submitting a claim for reimbursement, the sponsor shall certify that the claim is correct and that records are available to support this claim.” Cause: A roster of participants is maintained by each location for each day that meals are provided. Participants are not eligible for meals unless they are on the roster. The meals reported on the daily meal count forms exceeded the daily roster of participants. Effect: Meals were requested for reimbursement in excess of the number of participants included on the supporting roster of participants for the specific location and date. Total known and questioned costs were less than the reportable threshold of $25,000. Context: A sample of sixty (60) daily meal counts were selected for testing. For three (3) selections, there was no supporting roster of participants. For five (5) selections, the number of meals reported as delivered exceeded the number of participants eligible on the roster of participants. Recommendation: Currently, management has a process to require a daily roster of participants at each location in order to monitor the meals delivered and the eligibility of the participant. We recommend that current internal controls over compliance be reviewed and followed. Management’s Response: See accompanying management’s corrective action plan.

Corrective Action Plan

2022-004 – Reimbursement Claims Reported Meals Delivered to Unidentified Participants Corrective Action – GYAC has purchased an electronic system that assists with the tracking of meal count sheets and attendance rosters. This system compares the names on the roll with the number of meals being claimed, ensuring that participant rosters are accurately maintained and matched with meal delivery records, thereby preventing discrepancies and reducing the error rate in submissions.

Categories

Cash Management Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400934 2023-002
    Significant Deficiency Repeat
  • 400935 2023-003
    Significant Deficiency Repeat
  • 977376 2023-002
    Significant Deficiency Repeat
  • 977377 2023-003
    Significant Deficiency Repeat
  • 977378 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.558 Child and Adult Care Food Program $1.93M
10.559 Summer Food Service Program for Children $295,050